Abu Dhabi-based holding company ADQ has withdrawn its proposal to merge Abu Dhabi National Exhibitions Company (ADNEC) with Abu Dhabi National Hotels.
ADQ will no longer pursue the proposed transaction, Abu Dhabi National Hotels said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. The company did not specify the reason for the withdrawal of the offer by ADQ.
As per the reports, ADQ submitted the offer to Abu Dhabi National Hotels in June to merge ADNEC with the hotel company to establish one of the largest hospitality, events, and catering groups in the region.
According to the statement, the combined company would have a $5.45 billion (Dh20 billion) asset base, with 28 owned and operated hotels totaling 6,700 rooms, three huge exhibition centers in Abu Dhabi, Al Ain, and London, as well as various catering companies and food and beverage outlets.
ADQ was founded in 2018 and it has a portfolio of firms in important non-oil areas of Abu Dhabi’s economy. The companies comprise Abu Dhabi Airports, Etihad Rail, Abu Dhabi Power Corporation, Abu Dhabi Ports, insurer Daman, Seha, media companies Abu Dhabi Media and twofour54 and Abu Dhabi National Exhibitions Company.
Abu Dhabi National Hotels owns a number of hotels in Dubai and Abu Dhabi, including the Ritz Carlton Abu Dhabi Grand Canal, Sofitel Jumeirah Beach, Le Meridian Abu Dhabi, and Address Dubai Mall. It also manages the Al Diar hotel chain.
ADNEC, which owns and operates the Abu Dhabi National Exhibition Centre, the largest exhibition venue in the MENA region, has a strong presence. The company’s portfolio involves the 40-hectare ExCeL London exhibition and convention center in the UK capital’s Docklands area, Al Ain Convention Centre, Aloft London ExCeL, Aloft Abu Dhabi, Andaz Capital Gate Abu Dhabi, and Anantara Sir Bani Yas Island Abu Dhabi Resort.